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Ginger :
An Excellent Opportunity for
North East

White Paper Series

on
Agri-Business

Team DEssence

GINGER - AN EXCELLENT MARKET OPPORTUNITY FOR THE NORTH EAST

Indian Scenario
50% of the world's harvest is
produced in India
Kerala tops the list production 54,000
(in tonnes) followed by
Meghalaya(45,000), Arunachal
Pradesh(25,000), Mizoram(22,000)
Cochin ginger is popular and fetches a
premium price because of its superior
quality. It has less fibre and more
powder, besides having a lemon flavor.
Limited availability of land in Kerala
and shift of farmers towards more
lucrative crops like Vanilla place a cap
on total production creating an excellent
opportunity for the North East to fulfill
this latent demand. Additionally
GINGER prices have shot up in the
domestic market, reflecting the increase
in international prices due to short
supply.
Global Scenario
The two largest markets, EU and
USA, purchased over half the worlds
exports of spices between 1995 and
1998 (32.1% and 22.5%
respectively). The following five
importing countries took another
quarter of the worlds exp Singapore
(8.7%), Japan (8.5%), Canada
(2.8%), Malaysia (2.5%), Mexico
(2.2%)
Imports have recorded strong
growth of 8.5% a year over the past
five years.
Japan consumed about one lakh
tonnes per annum of ginger in brine
and most of this came from China.

Buying is also concentrated hands of a

small number of multinationals.
In order to ensure their supplies of high
quality spices, these multinationals often
enter into alliances with producers and
exporters in developing countries.
Also owing to the scarcity in the world
market, international players might be
forced to turn towards India. The market
thus offers exporters great potential.
Organizations can work towards
creating synergies between sector
players, co-coordinating and supporting
R&D, extension activities and export
services, strengthening alliances and
entering
buying
contracts
with
Multinationals, large traders and
retailers.
Key Success factors

Solid marketing, agronomic and

feasibility studies for ginger export
Training and strong support for
contract farmers to ensure high
quality raw materials

Thorough market research and

understanding of the quality
standards required by the Western
food ingredient industry
Concentration on target markets
with high potential
Creating Infrastructure for
Processing and Procurement
Processing using advanced
technology and emphasis at all
stages on quality control
Motivated and highly capable team
of managers and staff
Constraints

Lack of MSTQ systems

(measurement, standards, testing
and quality)
Lack of ample processing units in
the region
Partial awareness of quality and
phyto-sanitary requirements in
consuming markets
Ginger forms and end-uses

There are three primary products of the

ginger rhizome:
Fresh ginger
Preserved ginger in syrup or brine
Dried ginger
Preserved and dried products are
the major forms in which ginger is
internationally traded. Fresh ginger
is of less importance in international
trade but this is the major form in
which ginger is consumed in the
producing areas.
Dried ginger is used for the
preparation of its extractives ginger
oleoresin and ginger oil, for domestic
culinary purposes. In the Western,
countries it also finds extensive use in

the flavoring of processed foods.

Ground dried ginger is employed in
wide range of foodstuffs especially in
bakery and desserts.
Dried ginger has been traditionally
traded internationally in the whole or
split forms and is ground in the
consuming centers. Ginger oleoresin
finds similar applications to the ground
spice in the flavoring of processed
foods. The oleoresin is also used in
certain beverages and to a limited
extent in pharmaceutical preparations
Ginger oil is distilled from the dried
spice mainly in the major spiceimporting countries of Western Europe
and North America, but oil is also
prepared in some of the spiceproducing countries. It finds its main
application in the flavoring of
beverages and it is also used in
confectionery and perfumery.
Preserved ginger is used both for
domestic culinary purposes and in the
manufacture of processed foods such
as jams, marmalades, cakes and
confectionery.
Institutes involved in Research &
Development for Ginger

The Government of Kerala with the

Indian Council of Agricultural
Research
The Fruit Preservation and Canning
Institute, Lucknow
Central Food Technological
Research Institute, Mysore

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DEssence Consulting 2004

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Email.- harold@dessenceconsulting.com Mob - +91 9820678167
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